[Look Both Ways]

Hello all,

What are our options for homeowners wanting solar power, is it even worth it? Our electric bill hovers around $350.00 for a 3000 sq ft home.

[Crashj007]

Sounds like a nice house. Solar electric or solar water heating? Do you have a pool that you want to heat?
You can get quotes from local installers and decide if the payback on the capital investment is worth it?
There are plans to get your neighbors to help pay for it, called government rebates and tax credits.
The installers will tell you the net cost and they will guess the reduction in your electric bill that you may see, or not.
Let's say your cost is $20,000 out of your pocket. Let's guess you save $100 per month. That's 200 months to pay off, 16 years or so.
An essential calculation usually left off is the deferred rate of return. If you actually had the cash in hand and invested it in bonds at , say 4% per year, you would earn about $12,800 with the money over 16 years. That is real money lost, so your real cost is $32,800. So you would have to save $166 per month approximately. Don't even think what you would stand to lose by not investing it in the stock market at 12% average per year, cause that's a gamble, too.**
I approximate because the estimated savings from your installer is BS. Nobody knows how much you will save, they just guess.
"** Past returns on investments are not an indication of your results"

[Look Both Ways]

Originally Posted by Crashj007

Sounds like a nice house. Solar electric or solar water heating? Do you have a pool that you want to heat?
You can get quotes from local installers and decide if the payback on the capital investment is worth it?
There are plans to get your neighbors to help pay for it, called government rebates and tax credits.
The installers will tell you the net cost and they will guess the reduction in your electric bill that you may see, or not.
Let's say your cost is $20,000 out of your pocket. Let's guess you save $100 per month. That's 200 months to pay off, 16 years or so.
An essential calculation usually left off is the deferred rate of return. If you actually had the cash in hand and invested it in bonds at , say 4% per year, you would earn about $12,800 with the money over 16 years. That is real money lost, so your real cost is $32,800. So you would have to save $166 per month approximately. Don't even think what you would stand to lose by not investing it in the stock market at 12% average per year, cause that's a gamble, too.**
I approximate because the estimated savings from your installer is BS. Nobody knows how much you will save, they just guess.
"** Past returns on investments are not an indication of your results"

Thank you Crashj007.

We plan to heat the pool with a gas heater, so we will need solar electric for the home. We are hoping to hear from more members here to see how solar electric is working out for them.

[SportyandMisty]

Originally Posted by Crashj007

Sounds like a nice house. Solar electric or solar water heating? Do you have a pool that you want to heat?
You can get quotes from local installers and decide if the payback on the capital investment is worth it?
There are plans to get your neighbors to help pay for it, called government rebates and tax credits.
The installers will tell you the net cost and they will guess the reduction in your electric bill that you may see, or not.
Let's say your cost is $20,000 out of your pocket. Let's guess you save $100 per month. That's 200 months to pay off, 16 years or so.
An essential calculation usually left off is the deferred rate of return. If you actually had the cash in hand and invested it in bonds at , say 4% per year, you would earn about $12,800 with the money over 16 years. That is real money lost, so your real cost is $32,800. So you would have to save $166 per month approximately. Don't even think what you would stand to lose by not investing it in the stock market at 12% average per year, cause that's a gamble, too.**
I approximate because the estimated savings from your installer is BS. Nobody knows how much you will save, they just guess.
"** Past returns on investments are not an indication of your results"

I don't think you can get an after-tax 4% rate of return on taxable bonds. Nor can you get 4% rate of return on muni bonds.

I don't think you can get either a before-tax or after-tax 12% in equities either.

[Packrat1]

You might also consider getting an extremely efficient high SEER rated HVAC instead. That coupled with extra attic and garage insulation and other energy ideas that others have posted might be better.

One thing to also consider is the fact it is difficult to sell a home with a solar loan on the home. You might decide to move.

[SportyandMisty]

One more thing: in large part, photovoltaic panels are a hedge against future electricity rate hikes. There is another way to hedge against it: buy stock in electric utility companies. Or at the least, in Berkshire Hathaway which in turns owns Nevada Energy.

[vegas taco]

Originally Posted by SportyandMisty

One more thing: in large part, photovoltaic panels are a hedge against future electricity rate hikes. There is another way to hedge against it: buy stock in electric utility companies. Or at the least, in Berkshire Hathaway which in turns owns Nevada Energy.

A or B shares??

[Crashj007]

Originally Posted by SportyandMisty

One more thing: in large part, photovoltaic panels are a hedge against future electricity rate hikes. There is another way to hedge against it: buy stock in electric utility companies. Or at the least, in Berkshire Hathaway which in turns owns Nevada Energy.

YES! I'd love to be able to own a couple of shares of BRK.A:
Berkshire Hathaway Inc. Class A
NYSE: BRK.A - Aug 18, 4:00 PM EDT
267,377.00 USDPrice increase 302.00 (0.11%)

[Crashj007]

Originally Posted by SportyandMisty

I don't think you can get an after-tax 4% rate of return on taxable bonds. Nor can you get 4% rate of return on muni bonds.

I don't think you can get either a before-tax or after-tax 12% in equities either.

OKAY. I can't quickly find a reference to 12%, but here's a link to 7%:
Average Stock Market Return: Where Does 7% Come From? - The Simple Dollar

And I'm going to flag myself for thread drift.

[Crashj007]

Originally Posted by Packrat1

You might also consider getting an extremely efficient high SEER rated HVAC instead. That coupled with extra attic and garage insulation and other energy ideas that others have posted might be better.
One thing to also consider is the fact it is difficult to sell a home with a solar loan on the home.<>

If you sell you might have to pay it off which really limits your options in financing a new home. Never thought of that one.
Having just upgraded my water heater and becoming aware of new efficiency standards, I like this approach. It will definitely improve the home value. It will reduce bills, and it improves marketability when the time comes to move on. Solar might improve market value to some while narrowing your market.
All interesting, but of no help to the OP, who wants help from posters who have actually done something with solar.
"Poster who once had slightly solar heated above ground pool"